The Indian Hotels Company Limited

Transcription

1 The Indian Hotels Company Limited Analyst Meet Results for the Year ended March 31, 2012 May 29,

2 Disclaimer These presentations contain forward-looking statements within the meaning of applicable securities laws. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements Forward-looking statements are not guarantees of future performance and involve risks and uncertainties and other factors that may cause actual results to differ materially from those anticipated at the time the forward-looking statements are made. Future results, performance and achievements may be affected by general economic conditions, regulatory environment, business and financing conditions, foreign exchange fluctuations, cyclicality and operating risks associated with the hospitality industry and other circumstances and uncertainties. Although we believe the expectations reflected in such forward looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that results will not materially differ. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise Please visit our corporate website for previous investor communications 2

3 Presenter Panel Raymond Bickson - Managing Director & CEO Anil P Goel - Executive Director Finance Abhijit Mukerji - Executive Director Hotel Operations Deepa Harris - Senior Vice President Sales & Marketing 3

4 Outline of Presentation Industry Trends New Inventory Sales & Marketing Initiatives Financial Results 4

5 Industry Trends 5

6 International Tourist Arrivals % +6.1% +0.2% -8.4% +5.8% International Tourist Arrivals showed a healthy growth of 4% in 2011 and were as per expectations and similar trends are expected in 2012 Asia Pacific led the growth and this region continues to be the focus of the hospitality industry as well, Europe and Americas are witnessing recovery signals International tourist arrivals worldwide grew by 5.7% in the first two months of 2012 and is poised to reach 1 billion travellers in 2012 for the first time Source : UN WTO6

7 Marginal Recovery in the US market In Asia Pacific, incoming Supply led to almost flat growth in occupancies In Asia Pacific, RevPAR growth has been fuelled by Average rate increases In the Indian subcontinent, both rates and occupancies are lagging behind last year Global Hotel Performance Jan Mar 2012 Source : STR Globa

8 Foreign Tourist Arrivals in India Foreign Tourist Arrivals in India (In Lacs) % growth over Jan Feb Mar Apr May June July August Sept Oct Nov Dec Growth in International Tourist Arrivals in India has slowed down and saw a 9.4% growth in Jan to Mar 2012 over the same period of 2011 vs 10.8% growth in 2011 over 2010 The traditional source markets of US, UK and Western Europe continue to be the majority contributors to arrivals in India 8 Source : Ministry of Tourism, Government of India

9 15.0% India Hotel Performance Key cities Apr 2011 Mar 2012 Apr 11 - Mar 12, % change in Market Scenario 13.4% 10.0% 5.0% 6.0% 3.9% 2.9% 5.5% 2.4% 7.0% 4.2% 8.7% 7.4% 1.1% 0.8% 6.6% 1.8% 7.4% 2.4% 0.0% India Goa Mumbai Delhi Jaipur Bangalore Chennai Hyderabad Supply % change Demand % change There has been overall a 6% increase in supply over the last one year New supply mainly seen in new and emerging CBDs across key metros Demand has grown at a moderate pace this year 9

10 India Goa Mumbai Delhi Jaipur Bangalore Chennai Hyderabad India Hotel Performance Key cities Apr 2011 Mar 2012 Apr 11 - Mar 12, % change in performance -20% -15% -10% -5% 0% 5% 10% Occ % change ADR (INR) % change The performance of all metros is reflective of the demand supply dynamics As the new CBDs develop the performance of the new supply will also pick up The overall economic sentiment has also been low, especially in the last quarter and this has put additional pressure on rates 10

11 India Hotel Performance Key cities Jan Mar 2012 Jan Mar despite being peak season for the industry did not perform as per expectations Rates remained under pressure as demand subdued and supply continued to grow Source : STR Global

12 New Inventory 12

13 Supply Pipeline as of April 2012 Asia Pacific the Growth Centre for Investments in the Industry Source : STR Global

14 India Existing Supply and Pipeline CAGR 9% India Room Supply Existing 173,000 Pipeline 60,850 Total 233,850 India Pipeline Represents 17% of the Asia-Pac Pipeline Source : STR Global 14

15 Taj Group Inventory

16 New Hotels Opened in 2011/12 Hotel Company Rooms IHCL Direct/ Management Contract Vivanta by Taj, Srinagar Management Contract 88 Vivanta by Taj, Yeshwantpur IHCL 327 The Gateway Hotel, Sasan Gir Management Contract 28 Vivanta by Taj, Bekal, Kerala Management Contract 72 Sub Total 515 Subsidiaries/ JVs/ Associates Vivanta by Taj, Coimbatore OHL 180 Vivanta by Taj, Begumpet, Hyderabad Taj GVK 181 Ginger Hotels Tirupur Roots Corporation 95 Sub Total 456 New Development in 2011/12 7 Hotels 971 Rooms 16

17 17 Vivanta by Taj, Srinagar Launched : Apr 2011

18 18 Ginger Hotel, Tirupur Launched : Aug 2011

19 19 Vivanta by Taj, Yeshwantpur Bangalore Launched : Sep 9 th 2011

20 20 The Gateway Hotel, Gir Forest Relaunched : Oct 2011

21 21 Vivanta by Taj, Coimbatore Launched : Jan 19 th 2012

22 22 Vivanta by Taj, Begumpet Launched : Jan 30 th 2012

23 Harvard Center, Taj Lands End Launched : Mar 9 th 2012 Number of days booked from Opening till Mar 13 Total Revenue Accrued + On Books till Mar Days ` 5.6 Crores

24 24 Vivanta by Taj, Bekal, Kerala Launched : Mar 12 th 2012

25 Upcoming Development 2012/13 Hotel Company Rooms Taj Taj Palace Marrakech, Morocco Management Contract 161 Imperial Club by Taj, Tardeo, Mumbai Management Contract 9 Vivanta by Taj Vivanta by Taj, Dwarka IHCL 250 Vivanta by Taj, Coorg Kaveri Resorts 62 Vivanta by Taj, Gurgaon Management Contract 200 Gateway Gateway, Kolkata Management Contract 200 Gateway, Raipur Management Contract 119 Gateway, Gondia Benares Hotels Ltd 34 Gateway, Hubli Management Contract 92 Gateway OMR, Chennai Management Contract 193 Ginger Hotels (Eight in Number) Roots Corporation Ltd 720 New Development in Pipeline 2012/13 18 Hotels 2,040 Rooms 25

26 26 Taj Palace Marrakech, Morocco

27 27 Imperial Club by Taj, Tardeo, Mumbai

28 28 Vivanta by Taj, Coorg

29 29 Vivanta by Taj, Gurgaon

30 The Gateway Hotel, Kolkata 30

31 31 The Gateway Hotel, Raipur

32 32 The Gateway Hotel, Hubli

33 33 The Gateway Hotel, OMR Chennai

34 34 Vivanta by Taj, Dwarka

35 Upcoming Development 2013/14 Hotel Company Rooms Taj Taj Airport Hotel, CSIA, T1C, Mumbai Taj GVK Ltd 275 Taj Palace, Temple of Heaven Management Contract 105 Vivanta by Taj Vivanta by Taj, Nagpur Management Contract 255 Vivanta by Taj, Lake End, Udaipur Piem Hotels Ltd 80 Gateway Gateway, Faridabad Management Contract 160 Gateway, Banerghatta OHL 209 Gateway, Chiplun Management Contract 60 Gateway, Hinjewadi Management Contract 150 Gateway, Shirdi Management Contract 119 Gateway Nashik ( Expansion) Piem Hotels Ltd 67 Ginger Hotels (Ten in Number) Roots Corporation Ltd 1093 New Development in Pipeline 2013/14 20 Hotels 2,573 Rooms 35

36 Sales and Marketing Initiatives 36

37 Domestic Dominance Continue to be the No.1 hotel across markets Maintained higher RevPAR growths than market class despite increased competition Strategic initiatives such as Surprises have worked for us in the shoulder months Traditional Corporate and Leisure business continue to perform well for us across our diverse portfolio MICE and domestic leisure are the growth segments for the industry, and focus for us as well Bulk business under pressure and are driving average rates down 37

38 Business Wins Favoured Destination of Heads of States 38 BRICS summit, Taj Palace Delhi, March 2012

39 Vivanta by Taj Surya, Coimbatore January 2012 Press and Customer Launch Event The 180 room Vivanta by Taj - Surya, Coimbatore is the preferred address for stylish and contemporary hospitality Launched with a major press and customer event reaching out to more than 1000 influencers Integrated marketing campaigns at each launch combining sales activities with online, offline and digital marketing initiatives 39

40 Vivanta by Taj Begumpet, Hyderabad January 2012 Press and Customer Launch Event Introducing Vivanta by Taj to Hyderabad Spacious, contemporary and stylish with 181 rooms and suites and a kaleidoscope of culinary experiences including Thai Pavilion The launch party spread across 4 floors and 5 Zones Immense press coverage for all launches across national dailies and lifestyle media 40

41 Vivanta by Taj Bekal, Kerala March 2012 A brand new destination unraveled by Vivanta by Taj Soft Launch by Honourable Minister of Tourism Mr. Subodh Kant Sahay An immersive launch format with key trade and Media Sensorial journey of experiencing Bekal s various facets Has swept awards in the last 3 months It list, Hot list and many more Launch Ad 41

42 The Hindu Business Line - Life Evening Standard Global Press Coverage Vivanta by Taj launches Hindustan Times - Brunch Executive Traveller The Hindu 42

43 Accolades for Taj Inner Circle Taj InnerCircle has swept the Freddie Awards 2012 for the Asia/Middle East/Oceania region Freddie Awards was introduced in 1988 and honours excellence in frequent travel programmes. Best Hotel Program of the Year Best Customer Service Best Redemption Ability 43

44 Awards and Accolades Taj Group Gallup Global Great Workplace Award for the year 2012, third year in succession Best Hotel Group in India at the Travel + Leisure India's Best Awards 2012 The Taj Mahal Palace, Mumbai Best Heritage Hotel in India at the Travel + Leisure India's Best Awards Hotel of the Year (Editor s Choice) in the latest edition of the UK Gallivanter s Guide Vivanta by Taj Bekal Kerala Conde Nast Traveller, UK Hot List "60 Best New Hotels" in the world Conde Nast Traveller, Russia Hot list 2012 Travel & Leisure USA IT List 2012 Hotel of the Year 2012, Best New Hotel Upper Upscale 2012, and Special Critic's Award for Creating a New Destination at the HICSA Conference Best Upscale property of the year by SATTE

45 Awards and Accolades Travel + Leisure Top 500 World s Best Hotels 2012 Conde Nast Traveller USA's Gold List

46 Standalone Financial Performance Year ended March 31,

47 Highlights 2011/12 Turnover of ` 1,809 crores higher by ` 135 crores 8% PBT of ` 230 crores higher by ` 8 crores 4% PAT of ` 145 crores vs ` 141 crores 3% EPS at ` 1.91 vs `

48 Profit and Loss Account 2011/12 `/ crores 2011/ /11 % Change Net Sales/Income from Operations Other Operating Income Total Income a. Consumption of Raw Materials (12) b. Staff Costs (14) c. License Fees (14) d. Fuel, Power and Light (17) e. Depreciation (5) f. Other Expenditure (7) Total (11) Profit from operations before Interest and Tax (6) Other Income Profit Before Interest, Exceptional Item and Tax (2) Interest (Net) (14) Exceptional items (6.11) (5.79) - Profit Before Tax Tax Provision Profit After Tax

49 Turnover 2011/12 ` crores 2011/ /11 % Change Room sales F&B sales Other Income Management Fees Total Income Non Operating Income Total Income including Other Income Room Revenue Growth driven by 8% increase in Average Daily Rooms Sold including Capacity Increases (7 Hotels, 971 Rooms) Higher F&B Sales due to Increase in Restaurant Sales and Banqueting business Management fee linked to Higher Turnover and Profitability of Non IHCL hotels 49

50 Expenditure Raw Materials Cost ` crores Increase in line with 11% higher F&B revenue and commodity input cost increase Staff Cost ` Crores Increase due to annual increments, launch of new hotels in Bangalore & Hyderabad, Wage Settlements etc. License Fees ` crores Higher on account of higher turnover of licensed properties & new hotel in Bangalore Fuel, Power & Light ` crores Higher on account of increase in rates and new capacity 50

51 Expenditure Depreciation ` crores Higher due to opening of new properties and on going renovation programs Other Expenditure ` crores Increase in variable costs linked to business, commensurate costs of new properties and higher A&P spends on account of ongoing expansion of the Vivanta by Taj brand Interest (net) ` crores Various deleveraging initiatives undertaken over the last year contribute to reduction in interest costs for the standalone as also consolidated entity 51

52 Exceptional Items Expense of ` (6.1) crores in the current year against an expense of ` (5.8) crores in the previous year Particulars 2011/ /11 Income/(Expense) on surrender of a project (Net off accumulated capital expenditure) 11.4 (5.2) Shortfall of Business Interruption claim (8.7) - Profit on sale of hotel Profit/(loss) on divestment - (16.2) Exchange gain/(loss) (8.8) 11.3 Total (6.1) (5.8) 52

53 Quarter IV 2011/12 Unexpected sluggishness in occupancy and ARRs for the quarter Top line growth driven by new capacity and F&B sales Increase in staff costs and operating expenditure linked to the new Vivanta by Taj launch at Bengaluru Higher A&P spends on account of recent launches of Vivanta by Taj at Coimbatore, Begumpet, Bekal as also Bengaluru Non cash Foreign Exchange loss due to adverse currency movements Lower treasury income on account of deployment of preferential share issue proceeds 53

54 Balance Sheet as at March 31, 2012 ` / Crores March 31, 2012 March 31, 2011 Shareholders Funds Non- Current Liabilities Long-term borrowings Long Term Provisions Other Long Term Liabilities/ Deferred Tax Liabilities Current Liabilities Short Term borrowings Other Current Liabilities Trade Payables/Short-term provisions Equity and Liabilities Non-current Assets Fixed Assets Non-current investments Long Term loans and advances Other non-current assets Current Assets Current Investments Short term loans and advances Other currents assets/ cash & bank/ inventories/ trade receivables Assets

55 Dividend The Board of Directors have recommended a final dividend of 100% for 2011/12. (PY 100%) 55

56 Consolidated Financial Performance 2011/12 56

57 Major Taj Group companies Subsidiaries Indian Piem Hotels Ltd Taj SATS Air Catering Ltd TIFCO Holdings Ltd [Investment Company] Benares Hotels Ltd Inditravel Ltd United Hotels Ltd Roots Corporation Ltd Overseas International Hotel Management Services, Inc. St James Court Hotel Ltd Associates Oriental Hotels Ltd Lanka Island Resorts Ltd TAL Lanka Hotel PLC Others Joint Ventures Taj GVK Hotels & Resorts Ltd Taj Madras Flight Kitchen Pvt Ltd Taj Kerala Hotels & Resorts Ltd Taj Karnataka Hotels & Resorts Ltd Taj Safaris Ltd TAL Hotels & Resorts Ltd [Investment Company] Others IHMS (Australia) Pty Ltd Taj International Hotels (HK) Ltd [Investment Company] Samsara Properties Ltd [Investment Company] Others 57

58 Consolidated Financial Highlights 2011/12 Turnover of ` 3,433 crores PBIET of ` 341 crores PBT of ` 148 crores PAT of ` 3 crores EPS at ` 0.04 CY vs ` (1.19) PY 58

59 Domestic Portfolio Consolidated Financial Results 2011/12 Consolidated results show a profit of ` 3 crores against a loss of ` (87) crores. Key factors influencing the consolidated profitability are listed below: Growth in turnover & profits contributed by Piem, Taj Sats, Benares Hotels Ltd,etc. Roots Corporation Limited reports turnover growth, PBT breakeven and profit on divestment of a non performing asset International Portfolio Growth in turnover and profitability reported by St James, TIHL, IHMS (A) and TAL Hotels & Resorts Ltd Samsara Properties Limited debt fully retired through equity funding from IHCL Despite growth in turnover, US hotels continue to face challenges 59

60 Consolidated Financials 2011/12 ` / Crores 2011/ /11 % Change Net Sales/Income from Operations Other Operating Income Total Income a. Consumption of Raw Materials (22) b. Staff Costs (19) c. License Fees (13) d. Fuel, Power and Light (25) e. Depreciation (12) f. Other Expenditure (19) Total (19) Profit from operations before Interest and Tax Other Income Profit before Interest, Exceptional Items and Tax Interest (Net) Exceptional item (0.46) Profit/Loss from Ordinary Activities before tax Tax Provisions (Net) Share of Profit in Associates (47) Share of Loss of an Associate for Prior Period - (35.97) - Minority Interest In Subsidiaries (38.40) (11.66) - Profit After Tax 3.06 (87.26) - 60

61 Consolidated Snapshot `/Crores Revenue Profit after tax 2011/ / / /11 IHCL Standalone 1,809 1, Subsidiaries 1,544 1,073 (132) (245) Joint Ventures Associates (7) Total 3,522 2, (100) Less/(Add): Inter Company Eliminations (13) Consolidated Performance 3,433 2,862 3 (87) 61

62 Consolidated Balance Sheet as at March 31, 2012 ` / Crores March 31, 2012 March 31, 2011 Shareholders Funds Minority Interest Non- Current Liabilities Long-term borrowings Long Term Provisions Other Long Term Liabilities/ Deferred Tax Liabilities Current Liabilities Short Term borrowings Other Current Liabilities Trade Payables/Short-term provisions Equity and Liabilities Non-current Assets Fixed Assets Non-current investments Long Term loans and advances Other non-current assets/ Goodwill on consolidation Current Assets Current Investments Short term loans and advances Other currents assets/ cash & bank/ inventories/ trade receivables Assets

63 Consolidated Debt `/Crores Particulars March 31, 2012 March 31, 2011 Gross Debt Available Liquidity Net Debt 3,570 3,398 EBITDA Net Debt : Equity Net Debt : EBITDA Initiatives undertaken to improve liquidity along with better operational profits has helped improve Net Debt : EBITDA ratio of the Company. Liquidity raised will be used for reducing the existing debt. 63

64 Treasury Liquidity raised/ committed Raised $95 million via ECB to pay off overseas debt in November, 2011 Raised ` 136 crores NCD in February, 2012 Conversion of warrants - expect to receive ` 373 crores by June 23, Funds Utilized Repayment of 6% NCD in May, ` 603 crores Repayment of 9.50% NCD in February, ` 250 crores 64

65 International Hotels Occupancy (%) ARR ($) RevPAR ($) Hotel Name 2011/ / / / / /11 The Pierre, New York Taj Boston Campton Place, San Francisco St. James Court, London Blue, Sydney

66 Overview of Taj Group Particulars 2011/ / / /09 Number of hotels Rooms Inventory 13,629 12,795 12,243 11,546 Total Revenue ` / crores 4,795 4,288 3,739 3,918 Total Revenue denotes arithmetic aggregate of turnover of all hotels/units irrespective of ownership, including Management Contracts 66

67 Thank you 67